FX.co ★ Trading idea for NZD/USD

NZD / USD is the most overbought currency pair at the moment, thus, price has moved past its yearly high, jumping about 11,000 pips in the chart.

In fact, the NZD / USD pair is quite admirable. Dollar has been rising locally in the market but despite that, the pair is still not decreasing in price. The same can not be said though to other currency pairs such as AUD / USD and EUR / USD, which has been declining in the market for three days already.

In any case, short positions seem attractive and profitable at the moment, at least up to the first technical levels.

Dropping it into a breakeven is also an option, and in this case, buy stops should be placed below the lows of the coming days, as well as below the mirror level 0.67. Such a strategy follows the classic Price Action and Stop Hunting trading methods.

Of course, we still need to control the risks so as to avoid losing profit.

Best of luck!